North East Surrey College of Technology. Sub Contracting Supply Chain. Fees and Charging Policy

Transcription

1 1 P age North East Surrey College of Technology Sub Contracting Supply Chain Fees and Charging Policy

2 2 P age CONTENTS 1. Purpose 2. Scope 3. Responsibilities 4. Related Documents 5. Introduction 6. Engaging and Managing Sub-Contractors 7. Monitoring and Reviewing Sub-Contracted provision 8. Commissioning and Contracting Team 9. Risk Management 10. NESCOT Management Fees Matrix 11. Supply Chain Fees and Charging rates Figures: 1. Flow Diagram to show processes in subcontracting Table 1: NESCOT Management Fees Matrix Appendix 1. Contract Management Operations Report - ER Appendix 1a. Contract Management Operations Report LR ( Sharepoint)

3 3 P age Appendix 2. Due Diligence Contract Sample: See Sharepoint, Employer Engagement, subcontractor

4 4 P age 1. PURPOSE 1.1. The purpose of this document is to describe and communicate the College s policy in relation to the engagement and management of sub-contractors and sub-contracted provision. 2. SCOPE 2.1. This policy applies to all sub-contracted provision secured by the College. 3. RESPONSIBILITIES 3.1. The Director of Employer Engagement is responsible for authoring, implementing and overseeing the operation of this policy The Senior Management Team is also responsible for authorising this policy All staff in Epsom Development Business Centre (EDBC) and subcontractors are responsible for ensuring that they operate within the terms of the policy and to the associated work instructions. 4. RELATED DOCUMENTS a) Contract Management Operations Report, CMOR Appendix 1 b) Due Diligences document- Appendix 2 c) Agreement for the Provision of Learning Programmes and associates annexes and schedules 5. INTRODUCTION 5.1. The College recognises that sub-contracted provision can play an important role in providing a broad and flexible mix of provision for students, employers and the wider community. As such the College will seek to engage suitable sub-contractors to enhance existing provision. The College will engage with sub-contractors who can demonstrate high level of quality delivery by its KPIs, such as timely success rates and retention.

5 5 P age 5.2. The decision to engage sub-contractors to deliver learning programmes on behalf of the College will be a strategic decision and will take account of the following factors: The strategic aims and targets of the college. Local, regional and national needs of employers and students. The breadth and mix of provision required to meet employer and learner needs. The current and planned capacity of the college to deliver its strategic aims and targets. The strategic fit of potential partners with the college s aims and targets. The quality of provision from sub-contractors. Past performance of sub-contractors. The financial health of sub-contractors. Government and funding agency targets, priorities and regulations. Satisfactory completion of the Due Diligence process If the contract is over 100,000, the sub-contractor to be registered on the SFA s list on Register of Training Organisations, ROTO. 6. ENGAGING NEW SUB-CONTRACTORS 6.1. The College will run a rigorous and detailed application process for new sub-contractors prior to engaging any sub-contractor Potential sub-contractor will be required to submit all evidence listed in the Due Diligence document Directors of Quality and Finance need to ensure evidence submitted in the Due Diligence meets the College requirements The College will carry out formal lesson observations including assessment where applicable.

6 6 P age 6.5. The Director of Employer Engagement will review requests from potential new sub-contractors and, where appropriate, will recommend potential new sub-contractors to SMT Systems reviewed by the Head of Data Service to ensure robust systems are in place for effective contract management Potentional sub-contractor will be required to do a presentation to the SMT focusing on Quality of provision Once the sub-contractor has been approved by the SMT, the list of new and existing sub-contractors will be submitted to the Govenors meeting along with the standardised contractor for their approval The College will carry out regular, detailed Performance and Quality Reviews on all sub-contracted provision. Sub-contractors will be expected to meet agreed learner profiles and quality targets The sub-contractor will be required to attend monthly Contract Management Operations Meetings ( CMOM) to review learner profile, students at risk, success data and finance Where sub-contractors do not meet these targets the college will take swift action to ensure immediate improvement or to withdraw part or all of the agreed contract value and notify the Skills Funding Agency, SFA The sub-contractors will be required to carry out annual employer surveys as per College guidelines The engaging and managing of sub-contractors will be carried out by the EDBC department of the College From August 2013, the College will publish details onto the College website as required by the SFA guidelines.

7 7 P age 7. MONITORING AND REVIEW OF SUB-CONTRACTED PROVISION 7.1. The Commissioning and Contracting team in EDBC will perform ongoing monitoring and management of sub-contracted provision. This activity will include monitoring the sub-contracted provision against agreed profiles for learner numbers and contract value. It will also involve monitoring the quality of sub-contracted provision and the learner experience of those students on sub-contracted programmes. A member of the quality team will conduct termly unannounced visits to undertake a quality review which will include checking of learner work; ILPs, observe; and ensure all activity is within contract The Commissioning and Contracting team will be notified to the Director of Employer Engagement of issues with performance and quality of sub-contracted provision. Actions will be agreed to deal with any issues in provision Funding allocated to sub-contracted provision will be regularly monitored in-year and allocation will be moved between subcontractors and curriculum areas in year where performance is below target or where there are changes in funding circumstances SMT will review sub-contracted provision and the strategic drivers for sub-contracted provision on a regular basis The Commissioning and Contracting team will carry out as a minimum one scheduled visit per term and an unannounced monitoring visit. 8. Commissioning and Contracting Team 8.1. The Commissioning and Contracting Team will consists of: Deputy Principal / Assistant Principal Director of Employer Engagement Senior Director of Quality Director of Finance Head of Work Base Learning Head of Data Service

8 8 P age 9. Risk Management 9.1. When the College enters into a contract to deliver Apprenticeships, Work Place Learning or Learner Responsive with a sub-contractor, it needs to minimise risk and have in place approved processes to mitigate the risk NESCOT College have developed practices and procedures to screen out unqualified subcontractors, monitor subcontractor performance, and protect against subcontractor failure. Some of the common practices used by NESCOT with reference to Skill Funding Agency, SFA guidelines are: I. All subcontractors totalling 100k and above must be listed on the SFA Register of Training Organisations II. III. IV. All subcontractors MUST be registered with the UK Register of Learning Providers (UKRLP) and hold a valid UKPRN number. Successfully have completed the Due Diligence Process and the evidence submitted in the folder signed off by a member of Senior Management Team, SMT, see Due Diligence Process attached. Any subcontractor failing to meet ANY part of the Due Diligence Process will not be considered until such evidence is supplied and approved. V. On successful completion of the Due Diligence, NESCOT College will carry out the following: a. On site teaching and learning lesson observation b. On site Assessment observation c. On site health and safety checks d. Potential student views about the subcontractor VI. VII. The College will only award a contract once the Due Diligence Process have been met and have also delivered a satisfactory presentation to the SMT. The College will award a contract to a subcontractor if: a. It has an above average risk warning from a credit agency b. It has passed a resolution (or the court has made an order) to wind up or liquidate the company, or administrators have been appointed, or c. Its statutory accounts are overdue

9 9 P age 10. NESCOT Management Fees Matrix i. Management fees varies from 15 to 30%+ ii. Table 1 shows in details a criteria to set the management fees. 11. Supply Chain Fees and Charges Rates i. The charges will be calculated each year based upon the new process. ii. The charges cover all processes from course setup, enrolment, CIS reports, linked Quality OTL, internal audits, monthly CMOM meeting, Training and other related support to ensure the contract is delivered according the agreed KPI s. iii. Sub- contractors working with NESCOT College prior to the commencement of this policy will retain their agreed management fees. Total Weighted Score Management Fees Charged % % % %

10 10 P age Figure 1: Flow Diagram to show processes in subcontracting Subcontractor Application Due Diligence submitted Cumulative Contract Value > 100k Check SFA RoTA No Successful completion of Due Diligence No High Risk: 1. Credit Agency report 2. CCJ county Court Judgements 3. Statutory accounts Satisfactory: 1. OTL 2. Observation of Assessment 3. H&S 4. Student Views Subcontractor presentation to SMT Submit papers to Clark & report to Governors Not Successful provide feedback Issue Contract Deputy Principal sign off new sub-contractor file Copy of contract to Assistant Principal College Services

11 11 P age Appendix 1 North East Surrey College of Technology Contract Management Operations Report Name of Sub Contractor: Name of Director: Period No: 1,2,3,4,5,6,7,8,9,11,12 ( ) Quarter: Q1;Q2;Q3;Q4 ( ) Performance Summary 1. Contract Performance 1.1 Sub Contractor Contract Performance Attached spreadsheet will provide the following information which will help you complete this Operations Report. a. Students in- learning for level 2 apprenticeships b. Students in- learning for level 3 apprenticeships c. Students approaching their end-date d. Students who have passed their end date e. Finance earned per period and cumulative 1.2 Outcome Performance Overall Achievement Achieved Vs Target Target Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July L 2 L 3 Actual L 2 L Outcome Performance Timely Completion Achieved Vs Target Target Aug Sept Oct Nov Dec Jan Feb Mar Apr May June July L 2 L 3 Actual L 2 L 3

12 12 P age 1.4 Executive Summary of Students at Risk ( not completing the course etc) 1.5 Issues and Concerns relating to OTL, SV reports / actions 1.6 Director s Overall Summary 1.7 Director s Prediction of Year End (31 st July) Timely Success Rates Your Predicted timely success rates % based on the above information: List Frameworks here that are not going to come in at 7% above the national average:

13 13 P age Appendix 2 Due Diligences North East Surrey College of Technology Academic Year Partners Details Company Name Registered Address Company Registration No Training Location(s) if different from above Partnership Contact Name Partnership Contact Details Tel: UKLRP Registration Number Companies House Check 1 Yes / No Name: 2 Company Referencences In File Yes / No In File Yes / No Reason for using this Partner To widen access opportunity and participation by offering provision which complements the current range of programmes offered by the College To remove barriers to participation especially in under represented or non-participating groups To enhance the quality of the College s provision To remove duplication of provision To deliver training to key target groups To improve cost effectiveness of provision Other - attach as Appendix 1 Has UK and EU Procurement Legislation been adhered to Contract Information Geographical Area to be covered : How will you find the learners, market the provision: Are any other lead providers engaged with this partner, if yes please provide name and address:

14 14 P age Health and Safety Name of Insurer and Policy No Date of Expiry Copy in File Initials Public Liability Employer Liability Risk Assessments Health & Safety Policy RIDOR Disclosure Declaration of compliance with all EU and UK legis altion to include but not res tricted to employment, data, immigration, f di d lit Learner Support Policy Accepted Copy in File Initials Quality Assurance Reviewed by Accepted Copy in File Initials Policy Latest Ofsted report Latest EV Report(s) Qualification S uccess R ates AB Accreditation C ertificates Current Self Assessment Report Learner Documentation Submission Agreement Employment Agreement Access on Demand Agreement S ubcontractor Declaration Financial Reviewed by Accepted Copy in File Initials Contract Signed and Dated Risk Management considered Management Fee Agreement Director and S enior Manager Disclosures Dis clos ure of other P ublic F unds inc any expired in last three years Declaration of any C C J 's Operational Manuals, particularly data collection and record keeping Latest Audited accounts Reviewed by P roposed C ontract Value C urrent Liabilities (R oll Ins ) Numbers Value

15 15 P age Programme(s) and Level Geographical area(s) Person completing the file and checklist Date Signed on behalf of Partner Organisation Date Name in Block Capitals Position The above has been reviewed and meet the College and Sk ills Funding AgencyRequirements Signed on behalf of NESCOT Date Name in Block Capitals Sunaina Mann Position Principal Name in Block Capitals Carol Martin Position Deputy Principal Accepted Yes No

16 16 P age Table 1. NESCOT Management Fees Matrix Subcontracting Supply Chain Fees & Charging Policy Academic Year 13/14 Area/Activity No. Indicative risks (Gross risk) Range Weighting Likelihood Score Weighted Score Provider Information Quality 1 Experience & duration of establishment 2 Well established > 5 years & has 1 2 experience of SFA Established < 3 years 3 6 Established <1 years 5 10 New subcontractor Staffing - turnover, capability, disciplaries 1 Negligible turnover 1 1 Moderator turnover 5 5 Regular turnover Location of subcontractor 3 <50 miles miles miles 5 15 >301 miles Number of Delivery Centre 1 1 Site 1 1 Between between National Number of new sites 1 No new sites sites sites 5 5 > 4 sites Success rates on all programmes: Timely Success rates and Overall Success rates. 15 >10% national average 1 15 >6% national average 3 45 >4% national average 5 75 New Courses Sanctions from ANY awarding Body 7 15 No sanctions 1 15 Sanction due to finance 3 45 Sanction due to Quality 5 75 New validation Quality Improvement Plan: Timeliness completion rate 2 100% completion % outstanding to complete % outstanding to complete 5 10 None actioned 8 16 Reviews- compliance against audit % completed - 12 weekly reviews % outstanding to complete % outstanding to complete 5 25 new Provision 8 40 Quality of programme delivery - IAG, Induction and on Programme % completed % outstanding to complete % outstanding to complete 5 25 new Provision OTL and assessments in the workplace 10 Outstanding-90% Good 70%-89% 3 30 Satisfactory 60%-69% 5 50 Requires Improvement <59% Learner and Employer Voice 5 >86% Satisfaction %-85% Satisfaction %-69% Satisfaction 5 25 <60% or New Course 8 40 Existing Control Net Risk Responsibility Strategic theme Comments

17 17 P age Financial Position of Subcontractor SFA Guidelines Outstanding 1 15 Good 3 45 Satisfactory 5 75 Inadequate years audited accounts 10 3 year year year Value of the contract 15 < 100, , , , , > 300, Duration of the contract and of Frameworks 15 <12 months months months 5 75 > 24 months Auditors visit 10 Compliant 1 10 Minor issues 3 30 Major Issues 5 50 new Provision 8 80 Learners 18 Number of Learners 15 < > Location of learner delivery 15 <50 miles miles miles 5 75 >301 miles Provision -Type 20 Types of Qualifications 10 Short courses 1 10 Workplace Qual 3 30 Long Courses 5 50 Apprenticeships 8 80 Joint Delivery Provision 21 % of Qual delivered by partner 5 10% delivered by the provider % delivered by the provider % delivered by the provider 5 25